~ YOUR REALTOR

Monthly Archives: January 2014

Located in South Chennai, and having a strategic location along Grand Southern Trunk road, Chrompet is seeing high demand from the IT professionals for being an end-user destination are.

The connectivity of this centre to many IT hubs has opened up demand form this locality and it has attracted many IT professionals. This centre is also connected to Guindy and Nungambakkam via GST road (NH45).

Since property values is affordable in Chromepet and ranges from Rs 4,100 to Rs 5,100 per sq. ft., buying an apartment of 1000 sq. ft. would cost Rs 40-50 lakh. Chitlapakkam, another locality near Chrompet, offers property within Rs 45-55 lakh. Also places like Nangallur and Madipakkam located 8km away offer affordable housing within a budget of Rs. 45-60 lakh. Thus, Chromepet comes as an affordable choice to those who have a limited housing budget.

Talking about rentals, the presence of several educational institutions, in the locality has spurred a healthy demand for rental housing. Students and IT professionals eye this locality as a temporary abode for its well-built social and physical infrastructure. The monthly rent in Chromepet ranges from Rs. 10,000-11,000 for a 1000 sq. ft. apartment.

Since there is a huge supply of 2BHK properties worth 20-60 lakhs, the Portfolio management experts at Ikia consulting services feel that Chrompet is a stone’s throw away from The Chennai Metro City, and there is an added advantage of getting to stay near the airport.

DLF, the real estate major had come under the central revenue scanner for service tax evasion, by the parent and subsidiary companies, to the tune of Rs 30 crore. The company had entered in to land transfer rights with various companies and subsidiaries for transfer of development rights to them. The spokesperson of the company feels that the development rights transfer is part of an immovable property and hence not liable to attract service tax.

While DLF maintains that the company and its associates pay taxes to the tune of Rs 500 crores to the government each year, there is no question of evading taxes of Rs 30 crores over several years, the company clarified.

A case was earlier registered by the Directorate General of Central excise Intelligence for non-payment of service tax over transfer of development rights to other firms. The company claims to observe the highest standards of compliance when it comes to tax matters. The company also maintained that it has not received any findings from authorities on the service tax evasion allegation.

Chennai’s real estate has been dominated by hike in guideline values, registration charges, labor costs and approval delays over the past year. Even with the liquidity crunch, developers has been able to attract investment at predetermined prices, which has enabled them to raise short term working capital and avoid exorbitant lending cost.

The mismatch between demand and supply for housing in various pockets across the city has put investors and realtors in a dilemma on what to expect. However, industry sources point out sudden revival of interest towards North Chennai with a few developers all set to launch housing projects.

Capital appreciation is the driving factor for real estate investment and there is a predictable appreciation of 12 to 15 per cent per annum. Residential units generally appreciate by 18-25 per cent during the implementation phase spanning 2-3 years. Investments in land are another alternative with minimal upfront outflow, for long term investors. CMDA has had an overwhelming response to the plots allotment recently in places like Manali, MM Nagar etc.

Portfolio management experts at Ikia Consulting services advice that investors looking for an investment size of Rs 5-6 lakh with a time horizon of 10 years should look at GST road up to 100 km. Those with investible capacity of Rs.10-Rs 12 lakh with a time horizon of five years should opt for areas like Oragadam and Sriperumbudur. For others with Rs 8 lakh budget and a time horizon of 8 years, Sungavarchathiram and Trivellore are better options. At the same ground rules will have to be observed while investing in DTCP approved plots only.

Those investors, who would like to invest in commercial property and leased property, have limited options. The yield ranges from 9 to 11 per cent per year depending on the building, developer and amenities offered in the project for an investment size of Rs 20 crore and above. The threshold limit is Rs 7 crore-Rs 12 crore and small ticket sizes are in big demand now.

The experts at Ikia feel the time for investment is appropriate as fiscal sops, phased payment options and bargain deals are flourishing despite liquidity crunch, postponement of new launches and dipping sales.

The Poonamallee High Road, during the British colonial days was one of the arterial roads in the city of Chennai, designed with trees on both sides. The road was meant to connect many areas within the city to the historic Ponnamallee village.

During the medieval period, Poonamallee was an important settlement because of its strategic location not too far from many significant villages and towns including Sriperumbudur. The region was ruled by a local dynasty called the Nayaks. These chieftains were under the suzerainty of the Raja of Chandragiri who in turn, was a representative of the famous Vijayanagar emperor who ruled large parts of South India. Thus, it was Venkatadri Nayak, the ruler of Poonamallee, who, in 1639, granted permission to the British to establish a trading factory that later evolved into Fort St George. The Nawab of Arcot, later, acquired Poonamallee and granted it to the British.

At one time the road was a link between the western gate of Fort St George and the outlying areas southwest of the city. There was huge concentration of public building at the eastern end of the road during those times.

The General Hospital and the Central railway station were built on the Poonamallee High road, looking at accessibility and proximity to the highly congested neighboring localities of George Town and Royapuram.

The Administrative offices of the Railways (1922), The Victoria Public Hall (1887) initially conceived as a Town Hall of the city and the Ripon Building (1913) housing the city’s Municipal Corporation are the other important landmarks on this road. Around the same period, the Ramaswamy Mudaliar Choultry and the Siddique Sarai were built on the other side of the road. Both these buildings were designed to be rest-houses for the travelers using the Railway Station.

Earlier times, villages like Egmore, Vepery and Purasawalkam flourished to the north and south of the Poonamallee High Road. Gradually, these villages merged into the city and as time went by several new residential colonies have emerged on the arterials roads adjacent to the PH road.